Mumbai, 10 Aug (Commoditiescontrol) Brazil witnessed a record surge in its soybean exports to China during January-July 2023, reaching an unprecedented 50.4 million metric tons (mt), as stated by the country’s foreign trade ministry, Secex, in a report unveiled on August 7.
Secex's data reveals that from January to July this year, Brazil's total soybean exports amounted to 72.47 million mt, marking an impressive increase of 19.7% compared to the previous year. The figures indicate that China was the predominant buyer, accounting for a substantial 69.5% of the total shipments during this timeframe.
In the backdrop of price competitiveness, there has been a notable rise in Brazilian oilseed volumes shipped to China in comparison to prior years. Notably, from March to early July, Brazilian soybeans were trading at a considerable discount ranging between $20-$60/mt when juxtaposed with their prime competitor, the US.
Chinese crushers are inclined towards the protein-rich Brazilian soybeans as opposed to the US-origin oilseed. The significant discounts offered on Brazilian soybeans made them an irresistible choice for Chinese traders and local crushers, say market analysts.
2023 has proven to be a fruitful year for Brazilian soybean cultivators. Fueled by a historic harvest exceeding 156 million mt for the marketing year 2022-23 (spanning from January to December 2023), Brazilian soybean prices have been highly competitive on a global scale. This has propelled Brazil's export figures considerably.
Brazil's National Agricultural Supply Company (Conab) projects that the nation will export a groundbreaking 96 million mt of soybeans in MY 2022-23, reflecting a 25% surge year-on-year.
US Soybeans Regain Price Competitiveness
Lately, there's been a shift in China's purchasing pattern. The country has been procuring more US-origin soybeans as their prices are turning competitive. Platts assessments suggest that the basis prices for both Brazil and the US have been nearing each other as the US gears up for its harvest season in September.
On August 7, Platts, a segment of S&P Global Commodity Insights, evaluated SOYBEX FOB Santos for September shipments at $537.68/mt and SOYBEX FOB New Orleans at $537.19/mt.
Historically, sales of US soybeans spike between October and January, whereas Brazilian soybeans observe heightened sales volumes for the remaining months of the year.
(By CommoditiesControl Bureau; +91-9820130172)
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